NASAA Plans 2023 Push for Bad Actors Database

State securities regulators plan to press lawmakers in 2023 to mandate that regulators set up a bad actors database to track fraudsters.

The North American Securities Administrators Association’s just-released policy agenda states that Congress “should require the federal financial regulators to establish a bad actors database and allow state and local governments to participate in it,” as set out in the Tracking Bad Actors Act, which was introduced in the 117th Congress.

This bill, introduced last March by Sen. John Kennedy, R-La., “requires federal financial regulators to jointly publish a database of persons convicted or held liable in criminal, civil, or administrative actions regarding financial services that are brought by federal financial regulators, the Department of Justice, certain self-regulating organizations, or state or local agencies that voluntarily submit such information.”